Napocor streamlines budget

National Power Corp. (Napocor) will implement a 15-percent reduction in its contracted services as part of budget streamlining measures, a ranking company official said.

"We haven’t quantified yet the financial impact of such a move to reduce our outside services. But we have identified this as one of the possible ways to cut down on our expenses," the official, who requested anonymity, said.

In addition he said Napocor will also maximize its production cost by bulk procurement. "In Luzon, we will buy in bulk and on a wholesale basis," he said.

He said the state-owned company will also defer unnecessary purchases. "We will defer or put in the least priority those procurements that will not contribute to the viability of the company," he added.

The official said this is also part of Napocor’s strategy to ensure the continuous supply of efficient, reliable and quality electricity to its customers all over the country.

Napocor’s marketing personnel, for example, is stepping up the firm’s energy sales to increase revenues in view of the aggressive competition posed by private power producers.

Among the additional customers Napocor is eyeing are power-intensive companies with embedded generating units (i.e., those who generate their own power).

Napocor president Rogelio Murga said the firm should also intensify its collection efforts, particularly in relation to delinquent distribution utilities and electric cooperatives.

"We can’t continue operating without collecting our receivables. Without our collections, we will have no cash flow to pay for our day-to-day operations and to pay for our loans," he added.

Murga said Napocor will be more steadfast in exercising its policy of disconnecting customers with delinquent accounts.

He said Napocor will continue to pursue various initiatives aimed at organizational development, including training programs that will eventually transform its 3,700-strong workforce into world-class employees.